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Thread: AIG reports record $61.7bn loss

  1. #11
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    Re: AIG reports record $61.7bn loss

    Quote Originally Posted by Kernel Sanders View Post
    Is AIG even savable? At this rate AIG alone will be hemorraging a quarter of a trillion dollars a year. Add in the stimulus and the wars in Afghanistan and Iraq and the amount of money that the government is spending is simply mind boggling. It can't be sustainable.
    I think in the end AIG will become more of a burden then it is worth. The government will probably end up turning its back on it and let it go headfirst into bankruptcy. At some point in the future if this crisis continues to get worse then i think that would be the most feasible solution. If it becomes a burden on the government and taxpayers it will be doing more harm then it is good.
    Ideally they should break it up into smaller companies and reallocate there resources accordingly to be more efficient. I think that would be the best thing for AIG right now.
    Last edited by kaya'08; 03-02-09 at 03:59 PM.
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  2. #12
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    Re: AIG reports record $61.7bn loss

    Quote Originally Posted by Goldenboy219 View Post
    Who are the estimators?
    Saw it on CNBC today.

    Point is that the cascade effect of a total faliure of AIG would be catastrophic for the US economy and the world economy. They are THE insurance company of most major companies, local and a regional governments and that is on top many many other areas of business. They are also the worlds largest financier and leaser of airplanes for example.

    I think the end result will be a slow and some what painful but controlled break up of AIG into smaller companies of which some may be allowed to go bankrupt.
    PeteEU

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    Re: AIG reports record $61.7bn loss

    Quote Originally Posted by kaya'08 View Post
    I think in the end AIG will become more of a burden then it is worth. The government will probably end up turning its back on it and let it go headfirst into bankruptcy. At some point in the future if this crisis continues to get worse then i think that would be the most feasible solution. If it becomes a burden on the government and taxpayers it will be doing more harm then it is good.
    Ideally they should break it up into smaller banks and reallocate there resources accordingly to be more efficient. I think that would be the best thing for AIG right now.
    AIG is not a bank.
    PeteEU

  4. #14
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    Re: AIG reports record $61.7bn loss

    Omfg sorry i just realized i wrote that. My bad.
    "If religious instruction were not allowed until the child had attained the age of reason, we would be living in quite a different world" - Christopher Hitchens
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  5. #15
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    Re: AIG reports record $61.7bn loss

    Quote Originally Posted by kaya'08 View Post
    Omfg sorry i just realized i wrote that. My bad.
    It does/did however insure banks. So if a bank gave a loan to person X, then AIG insured the bank for any loss the bank might have. The problem was that there was no collateral to speak off to back up that insurance because when the property was less valued than the mortage.. then well..
    PeteEU

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